U.S. questions governor on ‘maintenance of effort’
Level of funding for schools under scrutiny
Published: March 23, 2010
Acting on concerns raised by CSBA, the Education Coalition and others, the U.S. Department of Education is weighing whether Gov. Arnold Schwarzenegger’s proposed funding for K-12 education meets “maintenance of effort” conditions required to qualify for federal economic stimulus funds.
“Our concern results from proposals by the Governor to reduce funding for K-12 education in California in 2010-11 by $2.4 billion—approximately $400 per student. On its face this proposal violates the maintenance of effort commitment made by the Governor and the state of California,” a Feb. 4 Education Coalition letter to U.S. Secretary of Education Arne Duncan notes.
The letter details how “the Governor’s proposed budget would manipulate this calculation” at schools’ expense. A “gas tax swap”, for example, would reduce the state’s general fund, and thus shrink the amount due to schools under Proposition 98’s minimum funding guarantee by $800 million; and $300 million specifically allocated to schools in the current fiscal year from local property tax receipts is instead shown in the governor’s budget to come from the state’s general fund.
“This ‘increase’ in General Fund support then allows the Governor to propose a separate, real cut of $300 million in funding for schools, while claiming that the state is maintaining its level of General Fund support for schools,” the letter explains of that last point.
U.S. Department of Education official Joseph C. Conaty repeated those concerns in a March 4 letter to the governor’s office, saying federal officials “will review your responses before making any final decision concerning California’s phase two [State Fiscal Stabilization Fund] application.”
Herb K. Schultz, who heads the governor’s federal economic stimulus operations, responded with “disappointment” in a March 15 letter asserting to Conaty that the administration is complying with federal maintenance of effort requirements—a contention the Education Coalition contradicts in this letter released today:
“The reality is that the Governor has proposed $2.4 billion ($400 per pupil) in cuts to California K-12 education for 2010-11. This proposal has resulted in lay-off notices being sent to more than 25,000 teachers, 1,000 administrators, and 10,000 classified employees (such as custodians, bus drivers, and maintenance workers).
“The reality also is that these cuts have been proposed despite the Governor’s budget proposal projecting that state revenues will increase in 2010-11 and despite recent cash receipts showing state revenues running ahead of projections for the current year.”
Easy links:
The letters mentioned can all be read online: